The way I see it, despite the strong odds, management continues to do enough to put most (if not all) of the company's past concerns to rest. Not to mention, the company must also adjust to performance-impacting law changes imposed by the Affordable Care Act, a.k.a. Obamacare.
If there were any real concerns this quarter, it's on the operating side. Margins did take a step backwards, falling 2% and missing estimates. But much of this was due to the sales mix and currency exchange rates. Plus, I'm willing to excuse this miss given that management was able to cut spending to help spur profits 5% higher.
As I've said, with the stock already at a 52-week high, there are better bargains out there. But that's not to suggest Stryker can't continue to offer above-average long-term gains. There's still value to be extracted from the MAKO deal, and I believe management's new vision has begun to change the culture of the company.
In short, I'm projecting this stock to reach $90 per share on the basis of 6% free cash flow growth.At the time of publication, the author held no position in any of the stocks mentioned. Follow @Richard_WSPB This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV